Bay of Plenty Business News February/March 2017

IT BUSINESS SOLUTIONS
BAY OF PLENTY BUSINESS NEWS February/March 2017 15
Report reinforces importance of digital
technology for SMEs
If each business owner achieved an extra
$20-30,000 per annum on the bottom line,
we think that would be awesome for the
economy.
So we focus on how we
can do that through the
use of technology either
via cost reduction or revenue
generation initiatives
In our last article we discussed
the average spend on IT
and how SMEs are responding
to an increasingly digital marketplace
by investing in IT.
A recent report, commissioned
by US cloud software company
Salesforce and undertaken by
Deloitte’s Access Economics
division, delves further into
how small business enterprises
(SMEs) are looking at technol-
ogy for customer retention and
acquisition.
The report ‘’SMBs in the
digital race for the customer’’
is based on a survey of more
than 500 New Zealand and
Australian businesses. It found
that small to medium sized
businesses (5-95 employees)
that embrace digital technologies
such as mobile platforms,
social media and cloud computing
are outperforming those
businesses that don’t.
It is an interesting report,
and here are some key findings.
Warning - some statistics
Creating a successful
business blog
TELLING YOUR STORY
> BY JAMES HEFFIELD
Director of Bay of Plenty communications consultancy Last Word
Writing Services. To find out more visit lastwordwriting.co.nz or
email james@lastwordwriting.co.nz.
included.
Australian and New
Zealand small to medium
enterprises (SMEs) are
embracing hardware spending
over online services to a much
greater extent than larger players
in international markets, for
example planned expenditure
in online services spending is
well below the annual global
projections of a 19 percent
increase. But there is a plan to
increase spending across three
categories of IT – hardware,
software and online services
– but spending is growing at
very different rates. SMEs’
hardware spend is set to rise
by 30 percent, software by 34
percent, and online services by
only 14 percent.
This is interesting as the
report finds that each additional
1 percent increase in
online services spending leads
to a 2.6 percent increase in the
proportion of sales conducted
via digital channels, and a 2.2
percent increase in digital lead
generation. SMEs with higher
spending on online services
also report a lower cost of
obtaining new customers, so
is spending on online services
resulting in a better return?
Investment in digital services
helps SMBs win customers
and generate revenue
SMBs which use social
media in a wider variety of
ways – for advertising, for
customer service, for targeted
offers – generate increased
revenue of more than $30,000
a year and each 1 percent
increase in spending on online
services leads to a 2.9 percent
increase in annual revenue
growth (an average
AU$100,000 a year among
businesses surveyed).
TECH TALK
> BY TONY SNOW
Director Stratus Blue Ltd. Tony@stratusblue.co.nz | Mobile
021 361 714 T 07 777 0010.
Every 10 percent increase
in customer relationship management
software usage leads
to a 1 percent increase in annual
revenue growth (average of
$30,000 a year) and adding
two extra communications
channels provides a 4.8 percent
boost to annual revenue
growth (average of almost
$160,000 a year).
Small businesses are facing
a more discerning and critical
customer than ever. The
customer is now smarter or
have access to more information
about your product or service.
Half of respondents rated
retaining existing customers
as the number one factor for
business success, yet only 15
percent of small businesses
have the ability to personalise
the online experiences of customers.
Eighty nine percent of
consumers have stopped doing
business with a company after
experiencing poor customer
service. Given it takes 12
positive experiences to make
up for a negative one, small
businesses have a challenge on
their hands
Almost half (48 percent)
of SMEs with no digital tools
or transactions do not know
what proportion of their sales
are to new or existing customers.
Not surprisingly, the
lack of even the most basic
data about their business and
customers is associated with a
longer than average response
time to customer enquiries and
complaints.
So this confirms what we
know: Being online, being
aware of your business and
customer’s needs, requirements
and attitudes helps complete
your IT story to achieve
an extra $20-30,000 profit per
annum.
If you want to read the full
report don’t hesitate to contact
Stratus Blue.
Online business blogs
have been around in
one form or another
since the early 2000s. And
while social media platforms
like Facebook and Twitter
have stolen the limelight in
recent years, the longer-form
blog can still play a valuable
part in your marketing and
communications toolbox.
But being successful
requires careful thought.
You need to start by figuring
out what it is you want to
get out of it. What are your
goals and priorities? Do you
want to position your business
as affordable, or as a
luxury brand? Are you aiming
to boost the number of
people visiting your website
to increase awareness of your
products and services?
For example, if you sell
exercise equipment, you might
decide you want to publish
items relating to lifestyle and
health, and generally promote
good habits. It’s worth taking
the time to ask yourself these
questions, and map out your
objectives clearly. Once you
do that, your blog has a better
chance of gaining an audience
and of having an impact.
There are thousands of
other people who write and
publish blogs, so the next step
is ensuring yours stands out
from the crowd. What will
you do to get attention, and
to ensure people keep coming
back? It’s a good idea to
do some research to see how
others have created a point of
difference.
Successful blogs do a number
of things. One winning
formula is to humanise your
brand by writing conversationally
and sharing stories
that others can relate to. You
can do this with images, and
through words.
Write in a way that makes
your readers feel like they’re
having a conversation with
you and use images that
demonstrate emotion and the
human experience. If you’re
not confident in your ability to
do this, consider getting some
expert advice on the best way
to engage your target audience,
or you might consider
hiring someone to write regular
blogs for you.
Inviting readers to respond
can also be a great way to
connect with them. If they
feel they can be a part of what
you’re doing, and that they
are being heard, they are more
likely to be engaged.
When you create your
blog, think about the themes
you want to cover. What is
your business about? What is
the big picture? Inject meaning
into your brand. And be
consistent.
Think about what you want
people to think when they see
your company name, and when
they think about your products
and services. Kathmandu, for
example, delivers a strong
message about its products
being a gateway to adventure,
and to a world full of possibilities.
The message is simple,
but effective.
It’s also worth remembering
that your blog shouldn’t
be all about your products
and services. Think broadly
about the industry you operate
within and what you want to
convey.
For example, if you sell
baby products, you might
want to write about choosing
the perfect daycare or overcoming
the age-old challenge
of getting your little one to
sleep through the night. If you
sell shoes, you might want
to blog about some of the
world’s top trails. You get the
picture.
The power of online messaging
is often conveyed
through photos and videos.
If you are not technologically
savvy, invest in a course
or find someone who knows
what they’re doing.
Successful bloggers owe
much of their appeal to layout
and formatting, and the visual
choices they’ve made with
their blog. If people like the
way your blog looks, they’re
far more likely to come back.
Finally, let your readers
know where they can find
you, and when you are running
promotions. If you offer
discounts and sales, make
sure there is always a link to
this. Your blog shouldn’t be
all about advertising, but it
should still connect with the
business. After reading a great
blog post, the chances are your
readers will want to check out
your products and services.
Excellence in IT Governance & Execution
We specialise in advisory services that deliver
a clear strategic IT vision and actionable
strategies that incorporate:
• Effective Governance
• Appropriate Risk & Compliance Management
• Organisational Capacity and Capability
• Accountable and Effective Execution
.... or more simply put: Value Delivery.
If IT is keeping you awake at night .. or you’re
just worried about:
• A project looking like a potential Train Wreck
• The security of your systems and data
• IT spend compared with benefits delivered
• Organisational risk should a disaster happen
• Lack of integration between different systems
• Poor adoption of innovative technology
• IT-related contracts not being as robust
as they could be
Talk to us. You will get sound advice and
support built on years of proven IT leadership
experience and wisdom
eSuccess Strategies
Text or call for success | +64 (0)21 621 342
info@estrategies.co.nz | www.estrategies.co.nz
*Read the full article in this paper, or on our website
IS DIGITAL TECHNOLOGY GOOD FOR YOUR BUSINESS?
www.stratusblue.nz
FIND OUT IN OUR ARTICLE
IN THIS PAPER
TECHNOLOGY SOLUTIONS
FROM GROUND TO CLOUD